Standard Chartered’s investment arm has agreed to sell its incubated venture, Solv India, to Jumbotail, a B2B marketplace.
The acquisition, which is subject to regulatory approvals, will see Jumbotail acquire e-commerce platform Solv from SC Ventures, the bank’s innovation, fintech investment, and ventures arm.
Integrating Solv India into Jumbotail will create a larger multi-category B2B e-commerce platform that will serve both small retailers (kiranas) and micro, small and medium enterprise (MSME) entrepreneurs, meeting their fintech needs, SC Ventures said in a release. The goal is to increase access for brands and manufacturers to middle-class consumers.
Solv India, launched in 2019 by SC Ventures, provides a digital commerce and supply chain finance platform for MSMEs.
Founded in 2015, Jumbotail operates a B2B e-commerce marketplace for food and groceries, helping kirana entrepreneurs modernize and digitize their stores. “Jumbotail’s strength across the entire food and grocery value chain, and Solv India’s strength in apparel, home furnishing, footwear, and toys is a beneficial combination,” said Ashish Jhina, co-founder and COO of Jumbotail.
The combined entity will be led by Jumbotail co-founders S Karthik Venkateswaran and Jhina. Gautam Jain, chairman of Solv India’s board, will join Jumbotail’s board, representing SC Ventures.
O3 Capital acted as the exclusive financial advisor, while Trilegal served as the transaction counsel for SC Ventures.
In 2022, Solv India raised $40 million (Rs 300 crore then) in a Series A funding round, led by Japan’s SBI Holdings, with participation from SC Ventures. The funding was intended to help Solv India expand and launch new products.
According to Standard Chartered, nearly 12 million kirana stores in India control more than 95% of the country’s $600-billion food and grocery market, the majority of which remains unorganized. Among the channels serving retailers, e-B2B is projected to grow the fastest at a compound annual growth rate (CAGR) of more than 80%.
